Accord signed: Pran Group to get $15m IFC loan
Jasim Uddin Haroon | Wednesday, 25 February 2009
International Finance Corporation (IFC), a World Bank private sector lending arm, will provide US$15 million loan to local Pran Group for expansion works of different agro-based plants of the company, official sources said.
An agreement to this effect was signed between IFC and Pran Group on Monday.
Pran Group is the first local private company to get such a big loan for agro processing plants from the IFC, the officials claimed.
Md Eleash Mridha, an executive director of the Pran Group told the FE Tuesday that they might get the first installment worth US$ 8.0 million by March 15 this year.
The remaining part of the loan might be disbursed in the fiscal year of 2009-10, Pran official hinted.
"After signing the agreement Monday, all procedures have been completed relating to the loan and we expect to receive the first installment within March 15," Mr Eleash added.
He said his company has taken a three-year (2009-11) programme to enhance the production of six subsidiary production units located in Rangpur, Ghorashal and other districts. The total cost of the programme will cost $ 51.2 million.
These subsidiaries are engaged in production of beverages, culinary products, confectionery, dairy products, snacks and premium rice.
"We expect to produce agro-based products worth Tk 2.0 billion annually after implementing the programme," he added.
The IFC is providing the loan at an annual interest rate of 3.5 per cent on top of LIBOR (London Inter-bank Offered Rate).
Pran officials said the main risk of taking foreign currency loan is exchange rate.
But an exporting company may repay the loan easily as it earns foreign currency," one senior Pran official added.
The Tk 5.0 billion Pran Group, established in 1993, now enjoys leadership in various agro-processed products such as fruit drinks and confectionery.
The group now exports its products to more than 70 countries, including African states.
"We sought the loan mainly to meet the increased demand for export," the Pran official said.
The IFC officials hoped that the loan would support the continued growth of the leading Bangladesh 's food company through enhancing capacity, improving operating efficiencies and exploiting domestic and export market opportunities.
Pran official said their expansion of agro-based plants would generate employment numbering around 3000 personnel.
Apart from IFC officials, Ahsan Khan Chowdhury, deputy managing director of Pran Group, its director finance Uzma Chowdhury and Eleash Mridha were present during signing ceremony held at the Pran head quarters in the city.
An agreement to this effect was signed between IFC and Pran Group on Monday.
Pran Group is the first local private company to get such a big loan for agro processing plants from the IFC, the officials claimed.
Md Eleash Mridha, an executive director of the Pran Group told the FE Tuesday that they might get the first installment worth US$ 8.0 million by March 15 this year.
The remaining part of the loan might be disbursed in the fiscal year of 2009-10, Pran official hinted.
"After signing the agreement Monday, all procedures have been completed relating to the loan and we expect to receive the first installment within March 15," Mr Eleash added.
He said his company has taken a three-year (2009-11) programme to enhance the production of six subsidiary production units located in Rangpur, Ghorashal and other districts. The total cost of the programme will cost $ 51.2 million.
These subsidiaries are engaged in production of beverages, culinary products, confectionery, dairy products, snacks and premium rice.
"We expect to produce agro-based products worth Tk 2.0 billion annually after implementing the programme," he added.
The IFC is providing the loan at an annual interest rate of 3.5 per cent on top of LIBOR (London Inter-bank Offered Rate).
Pran officials said the main risk of taking foreign currency loan is exchange rate.
But an exporting company may repay the loan easily as it earns foreign currency," one senior Pran official added.
The Tk 5.0 billion Pran Group, established in 1993, now enjoys leadership in various agro-processed products such as fruit drinks and confectionery.
The group now exports its products to more than 70 countries, including African states.
"We sought the loan mainly to meet the increased demand for export," the Pran official said.
The IFC officials hoped that the loan would support the continued growth of the leading Bangladesh 's food company through enhancing capacity, improving operating efficiencies and exploiting domestic and export market opportunities.
Pran official said their expansion of agro-based plants would generate employment numbering around 3000 personnel.
Apart from IFC officials, Ahsan Khan Chowdhury, deputy managing director of Pran Group, its director finance Uzma Chowdhury and Eleash Mridha were present during signing ceremony held at the Pran head quarters in the city.